A Quick and Easy Guide to BEE and BEE Exempt Certificates
Looking to find out more about BEE and BEE exempt certificates? If you’ve just started your own business or have been running one in South Africa for a while, then you’ve more than likely heard about BEE certificates and BEE exempt certificates. While this may be at the very bottom of your to-do list for now, it is important to understand BEE, the impact it has on your business, and whether or not you qualify for a BEE exempt certificate. If you’re in the dark, then here’s what you need to know.
What is BEE and What are the Main Benefits of Being BEE Compliant
Before accomplishing democracy in 1994, the apartheid government excluded all Black, Indian and Coloured people from our economy, and in an attempt to rectify the inequalities of apartheid and uplift and empower our previously disadvantaged population, the government (the Department of Trade and Industry) put the BEE, also known as B-BEE, system into place. There are many benefits of being BEE compliant, but first and foremost is business growth. You will be putting your company in line to qualify and secure large contracts and tenders with government and private multinationals. Secondly is retention of market share. Whether your business is small or large, because your business is BEE compliant, your corporate clients will automatically earn Preferential Procurement points on their BEE scorecard, which means that they will be encouraged to do business with you, even if your business is relatively new. The bottom line is that for those businesses that are looking for significant growth, BEE compliancy is extremely beneficial.
What is the Difference Between a BEE Certificate and an Exempt BEE Certificate?
Exempted Micro Enterprises or EMEs are businesses that are exempt from measurement in terms of the DTI’s codes of Good Practice for BEE. While an enterprise with more than R35 million turnover is measured against the generic codes, a small qualifying enterprise with more than R5 million turnover, but less than R35 million is measured against the QSE Codes. An Exempt Micro Enterprise with an annual turnover of under R5 million will be exempted from having to get a BEE verification, and will automatically qualify as 100% contributors towards BEE, scoring a Level-4. However, if the company is more than 50% black-owned, they can obtain a Level-3 status with 110% compliance recognition.
Believers in upholding solid values and maintaining long-lasting relationships with our valued clients, we are committed to helping small to large companies throughout South Africa take their businesses to the next level. As a reputable accredited accounting and tax firm, we can assist you with BEE exempt certificates. call us for a competitive quote today!